Search found 1710 matches

by MotoTrojan
Wed Jul 18, 2018 3:02 pm
Forum: Investing - Theory, News & General
Topic: Invest in Tesla?
Replies: 29
Views: 2034

Re: Invest in Tesla?

Still has a market cap well over Ford (was double before recent drop). Ford had $7.6B in earnings with $12B in cash reserves. Tesla had $2B loss and will need to raise more capital soon. If you believe they won't go bankrupt, you may be better off investing in their bonds. Current yield is over 7%....
by MotoTrojan
Wed Jul 18, 2018 2:58 pm
Forum: Investing - Help with Personal Investments
Topic: High Crypto Allocation
Replies: 15
Views: 667

Re: High Crypto Allocation

Agree with above. Same argument to go 5-20% should apply to going 100%. It’s all risk/reward.

Why do you think it’ll go up (genuinely curious)?
by MotoTrojan
Tue Jul 17, 2018 2:10 pm
Forum: Investing - Theory, News & General
Topic: Is Tax-Managed Small Cap (VTMSX) an underrated fund?
Replies: 33
Views: 3344

Re: Is Tax-Managed Small Cap (VTMSX) an underrated fund?

I hold the S&P600 Value through VIOV, but my 401k only has Vanguard Small-Value (CRSP index) and this Tax-Managed fund. For now I am using the SCV VG fund in 401k (will be putting 100% of Roth into VIOV to reduce the holding) but I have considered using this fund instead. Something feels wrong thoug...
by MotoTrojan
Tue Jul 17, 2018 2:05 pm
Forum: Investing - Help with Personal Investments
Topic: Need help picking investments for taxable brokerage
Replies: 6
Views: 478

Re: Need help picking investments for taxable brokerage

I would add bonds to pre-tax 401k, not Roth Agreed. OP, you seem to have the right idea to look at your portfolio as one entity and place things tax-efficiently. It is up to you to decide if you still want to use a target fund in the 401k/Roth, or start holding the individual funds and allocating/b...
by MotoTrojan
Tue Jul 17, 2018 2:03 pm
Forum: Investing - Help with Personal Investments
Topic: Phasing our Roth vs 401k
Replies: 6
Views: 448

Re: Phasing our Roth vs 401k

Considering you said you want to max both out, unless you have a tIRA I agree with above that you should do traditional 401k and then max out the Roth via a backdoor.
by MotoTrojan
Tue Jul 17, 2018 2:01 pm
Forum: Investing - Help with Personal Investments
Topic: Simple question on where to fund - 401k > IRA > what next
Replies: 18
Views: 1100

Re: Simple question on where to fund - 401k > IRA > what next

At your age I presume your AA is high enough that maxing out the 401k with S&P500 (and extended if you so please) would still enable you to maintain overall AA via your Roth IRA/taxable. Agreed, you should utilize the HSA if your insurance qualifies and you are comfortable with the high deductible p...
by MotoTrojan
Mon Jul 16, 2018 3:39 pm
Forum: Investing - Help with Personal Investments
Topic: How do you feel about my allocation to growth funds?
Replies: 4
Views: 181

Re: How do you feel about my allocation to growth funds?

magicrat wrote:
Mon Jul 16, 2018 3:33 pm
I don't understand why you would want that much complexity for $29k.
Agreed. Invest at your AA tax-efficiently. Nisiprius stated some other points I was going to make consisely, but it appears you have a misconception on what a “growth” fund is.
by MotoTrojan
Mon Jul 16, 2018 1:09 pm
Forum: Investing - Help with Personal Investments
Topic: Anyone Else Here Trying to Max Out 401k for the 1st Time in 2018?
Replies: 15
Views: 1073

Re: Anyone Else Here Trying to Max Out 401k for the 1st Time in 2018?

Yup. Been working 4 years. Did not contribute my first 2 at a prior employer, and my current employer's 401k is just starting this month. Will be contributing enough to max it out, along with similar monthly amount having gone into Roth/taxable the first half of the year. Excited to have another acc...
by MotoTrojan
Mon Jul 16, 2018 11:17 am
Forum: Investing - Theory, News & General
Topic: Balanced Funds and Sequence of Return Risk
Replies: 50
Views: 2813

Re: Balanced Funds and Sequence of Return Risk

If you rebalance, then, there is no difference between the 3FP and the balanced fund. KlangFool With the 3FP, if stocks are down, you can w/d bonds. With the Balanced Index fund,for example, every w/d is 60% equities and 40% fixed income. You can't choose which asset class to withdraw from. 1210 Th...
by MotoTrojan
Mon Jul 16, 2018 10:38 am
Forum: Personal Finance (Not Investing)
Topic: Bored
Replies: 25
Views: 3324

Re: Bored

Since I started taking personal finance seriously, I have increased my savings rate from 5% to about 20%, started maxing my 401k, re-balanced my 401k into cheap index funds, decided on an AA around 50/50 until my house is paid off, resolved not to refinance my house or pay extra on the mortgage, re...
by MotoTrojan
Mon Jul 16, 2018 10:36 am
Forum: Investing - Theory, News & General
Topic: Balanced Funds and Sequence of Return Risk
Replies: 50
Views: 2813

Re: Balanced Funds and Sequence of Return Risk

If you rebalance, then, there is no difference between the 3FP and the balanced fund. KlangFool With the 3FP, if stocks are down, you can w/d bonds. With the Balanced Index fund,for example, every w/d is 60% equities and 40% fixed income. You can't choose which asset class to withdraw from. 1210 Th...
by MotoTrojan
Mon Jul 16, 2018 9:24 am
Forum: Investing - Help with Personal Investments
Topic: Strategy to buy a north los altos house (SF Bay Area)?
Replies: 18
Views: 1791

Re: Strategy to buy a north los altos house (SF Bay Area)?

Do you have no other assets beyond that $1M portfolio? That would be concerning to me with your apparent spending.
by MotoTrojan
Sun Jul 15, 2018 9:02 pm
Forum: Personal Finance (Not Investing)
Topic: Where to get a $100 bill?
Replies: 49
Views: 4854

Re: Where to get a $100 bill?

I want to get a $100 bill to give as a gift. Our bank is through Ally, so I can't just go to a branch. I'm also not comfortable asking a friend or family member to get one from their bank for me. The ATMs I have used only give out $20 bills. How else could I easily get a $100 bill? If you walk into...
by MotoTrojan
Sun Jul 15, 2018 8:45 pm
Forum: Investing - Theory, News & General
Topic: High cash percentage in Vanguard Total International Stock Index Fund?
Replies: 2
Views: 555

Re: High cash percentage in Vanguard Total International Stock Index Fund?

Usually these broad index funds will hold some cash but use derivative type products to maintain full exposure to the index, ideally resulting in only trailing the index by expenses (and sometimes less with security lending).

You shouldn’t expect cash drag from this.
by MotoTrojan
Sun Jul 15, 2018 7:44 pm
Forum: Investing - Help with Personal Investments
Topic: What to sell for Mom's RMD
Replies: 15
Views: 1146

Re: What to sell for Mom's RMD

It's in a tax sheltered environment. Sell all of it, take the required distribution, and redeploy the rest into a less risky, less costly, and more reasonable portfolio for an 80 year old. Is this not on the table because there is sentimental attachment that this was what dad did, so I don't want t...
by MotoTrojan
Sun Jul 15, 2018 7:40 pm
Forum: Investing - Help with Personal Investments
Topic: Realizing 85% of 401k contribution going to bonds
Replies: 19
Views: 1895

Re: Realizing 85% of 401k contribution going to bonds

Overall AA is all that really matters. This is mental accounting nothing more. If you did 50/50 your 401k would grow more most likely but then taxable or Roth would be stinted.
by MotoTrojan
Sun Jul 15, 2018 7:25 pm
Forum: Investing - Help with Personal Investments
Topic: Tax implication of exercising company stock options
Replies: 9
Views: 913

Re: Tax implication of exercising company stock options

I have not seen close to the numbers above for non-executive level folks. At those numbers, these are likely ISOs and you can avoid taxation until sale as long as you stay under AMT. Regardless, you simply need to verify if these are ISO or non-qualified options and calculate the bargain element at...
by MotoTrojan
Sun Jul 15, 2018 12:47 pm
Forum: Investing - Help with Personal Investments
Topic: Tax implication of exercising company stock options
Replies: 9
Views: 913

Re: Tax implication of exercising company stock options

I have not seen close to the numbers above for non-executive level folks. At those numbers, these are likely ISOs and you can avoid taxation until sale as long as you stay under AMT. Regardless, you simply need to verify if these are ISO or non-qualified options and calculate the bargain element at...
by MotoTrojan
Sun Jul 15, 2018 12:42 pm
Forum: Investing - Help with Personal Investments
Topic: Fidelity Go vs. 3-fund portfolio vs FXIFX vs FSTVX
Replies: 5
Views: 455

Re: Fidelity Go vs. 3-fund portfolio vs FXIFX vs FSTVX

Got substantial taxable assets? If not, a Target Fund with an AA you’re comfortable with sounds like the best bet.
by MotoTrojan
Sat Jul 14, 2018 11:10 am
Forum: Investing - Help with Personal Investments
Topic: many differences in small cap indexes
Replies: 26
Views: 1487

Re: many differences in small cap indexes

I didn't read the article, but 1st thought was that the sp600 was more midcap (less small & micro) & more concentrated. How much difference that would account for I'm not sure, but I never thought of these as comparable myself Believe you’re confusing it with the CRSP index that Vanguard now uses. ...
by MotoTrojan
Sat Jul 14, 2018 10:02 am
Forum: Investing - Help with Personal Investments
Topic: many differences in small cap indexes
Replies: 26
Views: 1487

Re: many differences in small cap indexes

I didn't read the article, but 1st thought was that the sp600 was more midcap (less small & micro) & more concentrated. How much difference that would account for I'm not sure, but I never thought of these as comparable myself Believe you’re confusing it with the CRSP index that Vanguard now uses. ...
by MotoTrojan
Sat Jul 14, 2018 10:01 am
Forum: Investing - Help with Personal Investments
Topic: many differences in small cap indexes
Replies: 26
Views: 1487

Re: many differences in small cap indexes

I wanted to allocate a portion of my portfolio to small caps. It seems to me there are quite a bit of differences (and performance deltas) between small cap indices. The russell 2000 index seems to trail the S&P 600 index by a healthy margin. And I don't think there is any recency bias her because ...
by MotoTrojan
Fri Jul 13, 2018 11:19 pm
Forum: Investing - Help with Personal Investments
Topic: many differences in small cap indexes
Replies: 26
Views: 1487

Re: many differences in small cap indexes

Russell was prone to front-running (buying stocks before they enter the index) but I think they corrected that. Also S&P has a quality check via their earnings requirements. If basing your decision on past results at least consider using a value fund; small-value historically have complimented each ...
by MotoTrojan
Fri Jul 13, 2018 5:56 pm
Forum: Investing - Help with Personal Investments
Topic: Project - Where to park cashback rewards to accumulate and grow?
Replies: 13
Views: 1015

Re: Project - Where to park cashback rewards to accumulate and grow?

This is silly but if you want to ignore the fact that money is fungible then I’d incorporate it into your taxable AA in a separate but similar fund. Usually hold Total Stock Market? Buy Large Cap and count it as part of your TSM allocation. Or if you use ETFs normally, keep this fund in a Mutual Fun...
by MotoTrojan
Fri Jul 13, 2018 4:39 pm
Forum: Investing - Help with Personal Investments
Topic: Tell me what's wrong with my strategy
Replies: 71
Views: 4602

Re: Tell me what's wrong with my strategy

I would do something more like: 50% Total US 20% Total International 30% Nasdaq (QQQ) 5-10 years is way too short a time-span for any equity portfolio to be a risk-adjusted good idea though. I think you need to take a look at the big picture and figure out how equities can help your total financial ...
by MotoTrojan
Thu Jul 12, 2018 7:11 pm
Forum: Personal Finance (Not Investing)
Topic: Anyone experienced landlords here? Caught some of my tenants renting out rooms. Anything I should do?
Replies: 33
Views: 5672

Re: Anyone experienced landlords here? Caught some of my tenants renting out rooms. Anything I should do?

I'd also be uncomfortable with this personally and would want additional compensation for the risk/wear. I'd also want to approve of the subs.
by MotoTrojan
Thu Jul 12, 2018 6:19 pm
Forum: Investing - Help with Personal Investments
Topic: How to help parents "see the light" with index investing?
Replies: 17
Views: 1334

Re: How to help parents "see the light" with index investing?

I wouldn't go beyond giving them the book. With any luck you'll get them into a conservative 3-fund portfolio and the next year the market will tank and you'll be written out of the will.
by MotoTrojan
Thu Jul 12, 2018 12:23 pm
Forum: Investing - Theory, News & General
Topic: Can Inflation Timing Be Done?
Replies: 15
Views: 1013

Re: Can Inflation Timing Be Done?

Still requires predicting the future. By the time the data hits your feed, it’s priced in.
by MotoTrojan
Wed Jul 11, 2018 3:02 pm
Forum: Investing - Help with Personal Investments
Topic: Dividend stocks vs. dividend ETFs
Replies: 9
Views: 651

Re: Dividend stocks vs. dividend ETFs

Why do you want dividend paying stocks/funds as opposed to a broad-based index fund? As a percentage of your portfolio, how much do you anticipate spending per year (or what do you expect to spend from this $250K)? Total Return is all that matters. When a fund/stock pays out a dividend, its price wi...
by MotoTrojan
Wed Jul 11, 2018 2:30 pm
Forum: Personal Consumer Issues
Topic: Anyone take naps at work?
Replies: 93
Views: 5348

Re: Anyone take naps at work?

Reminds me of polyphasic sleep. http://time.com/5063665/what-is-polyphasic-sleep/ I tried what is called biphasic for a while (4.5 hours of "core sleep" and a 90 minute nap during the day) but the extreme is called the Uberman, which entails a 15-20 min "nap" every 4 hours. You better be able to nap...
by MotoTrojan
Wed Jul 11, 2018 11:00 am
Forum: Investing - Help with Personal Investments
Topic: Received $1m windfall with additional upside; looking for feedback on plan to hedge against market correction
Replies: 36
Views: 5297

Re: Received $1m windfall with additional upside; looking for feedback on plan to hedge against market correction

Another vote here to do something like tax-managed balanced fund (50/50 I believe) and keep learning. 30/70 is really low. Better than tax-managed would be to setup your own 2-3 fund portfolio though, so that you can best benefit from tax-loss harvesting should the market go south. I also would lump...
by MotoTrojan
Wed Jul 11, 2018 9:27 am
Forum: Investing - Help with Personal Investments
Topic: Recurring investments in taxable account
Replies: 26
Views: 1873

Re: Recurring investments in taxable account

Presume you have already funded the Roth? Personally I’d not want to pay trade fees. Can trade VTI free at Vanguard or E*TRADE. Schwab has excellent ETFs as well that trade free at Schwab. Ditto Fidelity. Don’t know about TDA. There’s probably an equivalent you can get for free. I was funding the R...
by MotoTrojan
Tue Jul 10, 2018 9:23 pm
Forum: Investing - Theory, News & General
Topic: Wellesley alternative for taxable acct.?
Replies: 25
Views: 2854

Re: Wellesley alternative for taxable acct.?

Your reason to want this fund is flawed.
by MotoTrojan
Tue Jul 10, 2018 8:55 pm
Forum: Investing - Theory, News & General
Topic: Stock ETFs -- Should I look at the SEC yield, Distribution Yield, or TTM yield?
Replies: 22
Views: 967

Re: Stock ETFs -- Should I look at the SEC yield, Distribution Yield, or TTM yield?

.Last weekend I was reading a book by Bernstein and he mentioned a result in the Credit Suisse 2011 Yearbook that caught my attention. Long story short, equities with high dividend yields seem have higher return, and Bernstein suggeested that tilting a portfolio toward high-yield regions could impr...
by MotoTrojan
Tue Jul 10, 2018 7:07 pm
Forum: Investing - Help with Personal Investments
Topic: “Managing” a taxable investment account
Replies: 4
Views: 382

Re: “Managing” a taxable investment account

Interesting ... I just set it to autoinvest thinking my shares are giving me the ability to buy more shares so put that to work ASAP For future “tax lots” - if I just use FIFO or Average/Share will this be a big issue? In the modern age I don't think it really matters much. I would always advice yo...
by MotoTrojan
Tue Jul 10, 2018 7:06 pm
Forum: Investing - Help with Personal Investments
Topic: “Managing” a taxable investment account
Replies: 4
Views: 382

Re: “Managing” a taxable investment account

I think you have the right idea. Use tax-efficient funds that have low dividends that are mostly qualified and low turnover (Total US or Large cap, Total International). Reinvestment doesn't really matter but as mentioned above I prefer to reinvest automatically in my tax-advantaged accounts and the...
by MotoTrojan
Tue Jul 10, 2018 12:53 pm
Forum: Investing - Help with Personal Investments
Topic: IRA Funding vs 401K funding
Replies: 5
Views: 324

Re: IRA Funding vs 401K funding

I don’t believe there is a difference in the end.

Make sure you are eligible for a tax-deductible IRA. If not, a Roth is more likely to be eligible.
by MotoTrojan
Tue Jul 10, 2018 12:47 pm
Forum: Investing - Help with Personal Investments
Topic: Did I screwup and create a wash sale? First try at tax loss harvest
Replies: 13
Views: 1213

Re: Did I screwup and create a wash sale? First try at tax loss harvest

I did use Specific ID. I will plan to exchange all remaining taxable VTIAX for VFWAX in at least 31 days from the most recent VTIAX purchase in any account of mine or my spouses, taxable and nontaxable. I would not swap VTIAX back to VFWAX unless it is a loss again. You should always TLH into funds...
by MotoTrojan
Mon Jul 09, 2018 9:11 am
Forum: Investing - Help with Personal Investments
Topic: Did I screwup and create a wash sale? First try at tax loss harvest
Replies: 13
Views: 1213

Re: Did I screwup and create a wash sale? First try at tax loss harvest

06/04/2018: Automatic purchase of some VTIAX 06/18/2018: Automatic purchase of some VTIAX 06/21/2018: VTIAX dividend reinvestment 07/02/2018: Sold some VTIAX lots for a loss It just occurred to me this morning that my Roth IRA with Vanguard holds VTIAX and therefore also received a dividend on 06/2...
by MotoTrojan
Mon Jul 09, 2018 9:09 am
Forum: Personal Finance (Not Investing)
Topic: Should I take a $60k paycut to work 4days/week
Replies: 58
Views: 5189

Re: Should I take a $60k paycut to work 4days/week

Depends on your lifestyle/creep/retirement-dreams. That’s still tons more income than many families working 6 days a week with multiple jobs.

Agree to run the numbers with tax accounted for.

I’d consider it myself.
by MotoTrojan
Fri Jul 06, 2018 2:58 pm
Forum: Investing - Theory, News & General
Topic: Tradional IRA conversion to ROTH IRA taxable amount?
Replies: 32
Views: 1380

Re: Tradional IRA conversion to ROTH IRA taxable amount?

It’s important you first understand if your tIRA contribution was tax-deductible or not. When did you contribute the $5K?

Form 8606 will savd you lots if it was a tax-free deduction. Your tax will depend on how much growth has occurred prior to conversion.
by MotoTrojan
Thu Jul 05, 2018 1:29 pm
Forum: Investing - Help with Personal Investments
Topic: Tax-deductible 403b vs. taxable Vanguard ETF
Replies: 17
Views: 904

Re: Tax-deductible 403b vs. taxable Vanguard ETF

2.5% is criminal. 1% is outrageous. Can you transfer to an IRA at Vanguard?
by MotoTrojan
Tue Jul 03, 2018 11:49 am
Forum: Investing - Help with Personal Investments
Topic: What’s your plan for a market downturn?
Replies: 114
Views: 9485

Re: What’s your plan for a market downturn?

If you rebalance during a downturn, though, when everything is going down, (so you’re actually selling funds to buy other funds), doesn’t that just mean your locking in your losses? If you mean rebalancing by adding new money though, then I see the benefit in that If stocks are down 50% and bonds a...
by MotoTrojan
Mon Jul 02, 2018 8:56 pm
Forum: Investing - Help with Personal Investments
Topic: RSU Strategy
Replies: 10
Views: 790

Re: RSU Strategy

Whether you sell today or hold for 5 years and theoretically sell at the same price, you’ll have been taxed this same amount (all this year). If you wouldn’t buy it with cash, you should sell the day it arrives.
by MotoTrojan
Mon Jul 02, 2018 2:21 pm
Forum: Investing - Help with Personal Investments
Topic: Need Your Feedback on 100% VTSAX
Replies: 37
Views: 2957

Re: Need Your Feedback on 100% VTSAX

Reformed Trader: The US companies in VTSAX tend to be international and more stable. The international markets seem more volatile. Your thoughts? Yes, it might be a bit more volatile, but who cares if you get less volatility if you get no real return. IMO the long term has been shown to be quite pr...
by MotoTrojan
Mon Jul 02, 2018 2:19 pm
Forum: Investing - Theory, News & General
Topic: Vanguard to offer non-Vanguard ETFs commission-free
Replies: 120
Views: 9084

Re: More commission free ETFs coming to Vanguard

That’s interesting. I wonder if IJS (Sp 600 SCV) will be on that list. Are there good ETFs out there that aren’t vanguard based but still good for the index investor? I can’t imagine there’s that much unless you invest in active funds. Some DFA options maybe. Small-value International is a VG hole ...
by MotoTrojan
Mon Jul 02, 2018 2:18 pm
Forum: Investing - Theory, News & General
Topic: Vanguard to offer non-Vanguard ETFs commission-free
Replies: 120
Views: 9084

Re: Vanguard to offer non-Vanguard ETFs commission-free

If they offer the following, I'll consider moving my Schwab accounts to Vanguard: MDYV - State Street S&P 400 Mid-cap Value SLYV - State Street S&P 600 Small-cap Value FNDC - Schwab International Developed Markets Small Fundamental FNDE - Schwab Emerging Market Fundamental Curious as to what Vangua...
by MotoTrojan
Mon Jul 02, 2018 1:06 pm
Forum: Investing - Theory, News & General
Topic: 28 w/heavy small cap tilt?
Replies: 41
Views: 2955

Re: 28 w/heavy small cap tilt?

Bonds are coming off a historic run which may not continue. I would not do a 50/50 allocation at your age and consider that aggressive. Most would wager you won’t see that 6% return, plus that’s nominal and there was significant inflation during much of this period. I’m 100% equity with 20% to S&P60...
by MotoTrojan
Mon Jul 02, 2018 1:04 pm
Forum: Investing - Help with Personal Investments
Topic: Where to park funds for 2019 rIRA?
Replies: 6
Views: 514

Re: Where to park funds for 2019 rIRA?

My 2018 Roth IRA (and spouse's) is fully funded. I have $11,000 of cash that I want to use for 2019's rIRA, but where's the best place to keep it? 1) High yield bank for 2nd half of the year until Jan 1st? The rate will be 1.75% 2) Taxable instead of high yield? Regarding 2, I'm not really sure how...
by MotoTrojan
Mon Jul 02, 2018 11:10 am
Forum: Investing - Help with Personal Investments
Topic: Need Your Feedback on 100% VTSAX
Replies: 37
Views: 2957

Re: Need Your Feedback on 100% VTSAX

I wouldn’t over complicate with small-caps, more likely to change your plan when you shouldn’t and longterm the differences aren’t drastic. Total Market (US) and then 20-30% of Total International would be my call. While usually ETFs are more tax-efficient, at Vanguard the mutual funds are a differe...